OTTAWA COUNTY -- Michigan Gas Utilities Corp., with customers in northwest Ottawa County, announced Friday it has applied to the state for a 5.8 percent overall increase in natural gas rates.

If approved, the new rate would result in a monthly increase of about $6 for the typical residential customer using 92,000 cubic feet of natural gas annually. Additionally, the utility is asking for a 4.4 percent interim increase, subject to refund, while the Michigan Public Service Commission (MPSC) considers the overall request.

The commodity cost of natural gas is not affected by this rate request.

The Monroe-based Michigan Gas Utilities Corp. is a subsidiary of Integrys Energy Group and serves approximately 165,000 customers in lower Michigan, including Ottawa County. Officials blamed the rate increase request on inflation.

"Due to inflation, our costs have risen over the past five years, so we need this increase to recover those increased costs," said utility President Gary Erickson. "We are sensitive to our customers' frustration at rising energy costs and we have tried to hold our request to a minimum. For example, all utility employees are now bearing more of the cost of employee benefits."

Erickson said that natural gas commodity prices continue to be volatile and current indications are that prices could be higher next winter. The utility does not profit from the price of natural gas commodity. It simply passes the cost of the natural gas commodity through to its customers, under the oversight of the MPSC.

"The rate increase is only related with the delivery of the gas commodity," Erickson said. "That makes up about 27 percent of the total bill for a typical residential customer. The rest of the bill is the cost of the natural gas commodity itself."